🐢 Are EV Sales Really Slowing? Here's the Truth Behind the Headlines

September 10, 2024

Article Overview

giphy

Is the EV market slowing down or just hitting a speed bump?

Let's cut to the chase: No, the EV market isn't crashing, cooling, or falling. But it is driving into a bit of a transition period. Headlines saying otherwise? Yeah, those might need a fact check. The truth is, EV sales are still climbing, but they're not skyrocketing like they were in the early days. Makes sense—once you've hit a certain speed, you don't need to keep flooring it.

Volvo Hits the Brakes…Sort of

Remember when Volvo was all in on going full electric by 2030? Well, turns out, the Swedish giant has decided to keep one foot in the hybrid game. Why? Volvo says they need to be "pragmatic and flexible" in response to market conditions. Translation: They're hedging their bets to keep customers happy while the world catches up on charging stations.

Here's what Volvo is now planning:

  • 90%-100% of sales will be fully electric or plug-in hybrids by 2030.

  • Up to 10% will be mild hybrids. Because, you know, people still like having an engine around.

Wait, so EV sales are slowing?

giphy

Great question! No, not really. Sales are still going up, but the growth isn't as wild as it was a few years ago. It's like expecting a car to keep accelerating indefinitely—it just doesn't happen. Once you're cruising, the percentage growth slows down. EV sales were up 22% in the first half of 2024, which is solid. But if you compare it to the 35% leap from 2023, it seems smaller. Spoiler: That's normal.

What's happening with the charging infrastructure?

Ah, the classic "chicken or the egg" problem of the EV world. Charging stations aren't going up as fast as EV sales. Some automakers, like Volvo, have hit pause on pushing out more electric models because well, it's tough to sell a car if people don't have anywhere to charge it. Europe, in particular, is feeling this pinch as government incentives have started to disappear faster than that one model on a clearance sale.

But are EVs really a hard sell?

giphy

Short answer: Yes and no. Tim Urquhart from S&P Global Mobility pointed out that convincing folks to switch from the gas pump to the charging cable is harder than it seems. People have been driving gas-powered cars for over 130 years—it's a tough habit to break. Add in the slower-than-promised charging infrastructure, and some buyers are hesitant to make the jump. It's like telling someone to go vegan when they've been living on steak for a century.

Q: If EV sales are up, why are we hearing about slumps?

A: Good question! Some headlines are getting carried away by focusing on the fact that percentage growth is slowing down. But here's the reality check:

  • EV sales are still climbing.

  • Gas car sales are actually falling.

  • The real slump is in gas-powered vehicles, which are down 25% since 2017. But is anyone talking about that? Crickets.

So what's next for EVs?

Glad you asked. The direction is still electric, no doubt. China is leading the charge (pun intended), making up 60% of global EV sales. Meanwhile, Europe is facing a slight cool-off after that 2020-2021 boom, but don't count them out just yet. As for the U.S., EV sales jumped 12% in the first half of 2024. It's a slower ride to the future, but the path is clear.

Bottom Line?

giphy

EV sales aren't crashing—they're growing. Slower, sure, but growing nonetheless. The challenge ahead is all about balancing consumer expectations, infrastructure development, and keeping the market profitable. Automakers aren't hitting the panic button; they're just adjusting the game plan. So, if you're hearing chatter about an EV slump, just know: the road is still very much open.

Read more:

What do you think? Leave us a comment below and then sign up for the Daily Pushback to keep up with the story.

Reply

or to participate.